At H&M, Expansion Has Its Costs

'Wise' Long-Term Investments Cut Into Short-Term Results

By

Jens Hansegard

Updated March 27, 2014 10:35 a.m. ET

STOCKHOLM—Hennes & Mauritz Chief Executive Karl-Johan Persson said the company is willing to shoulder heavier costs in an effort to keep the Swedish retailer's growth machine churning. That includes raising the stakes in the Chinese market.

H&M is working on a stable of "wise" long-term investments that overshadow short-term results, Mr. Persson said in an interview Thursday following the release of fiscal...